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Group B-05:
10P187 Anant Garg 10P200 Harpreet Singh 10P218 Pinak Mukherjee 10P223 Rahul Reddy 10P225 Rakinderjit Singh 24NMP14 Jagadeeswara Reddy S
Brand Heineken
Brand Heineken: Proud of it s heritage Proud Heritage Successful Innovation Quote-unquote: The Heineken company without its brands is not a company. It only produces (premium) brands from conviction and consciously operates a multi-brand strategy Mr. Leo van Sister, leading Strategic Brand & Marketing Consultant Case Facts: Project Comet: Defined 5 components of Heineken's global brand identity and explored how they should be expressed in Heineken's brand communication Project Mosa: Identified the expressions of taste and friendship that had the most appeal and explored how they should be expressed in Heineken's TV advertising worldwide Issues: Heineken s brand image not consistently projected in the brand s communications around the world Build Heineken as a truly Global brand The Company while undertaking licensing agreements could specify how the Heineken brand should be marketed, but it could not influence how a licensee marketed its own brands. Some licensees did not maintain sufficient price premium for the Heineken brand over their own national brands In Europe, overcapacity and minimal population growth resulted in price competition, margin pressures and efforts to segment further
Ques 1. Strengths/Weaknesses
Strengths
Good Taste: It s unique golden color, sparkling texture and refreshing coolness emphasize it s taste Light beer of superior quality presented in attractive Packaging Premiumness: In countries other than Netherlands marketed as a premium brand; considered mainstream brand in Netherland (Marker leader in Netherlands) Heritage: Brewed since 1868, led by generations of the brewer family Alfred Heineken, who considered a bad bottle as a personal insult Huge volumes: Second largest in terms of sales of beer brewed around the world, 5.6 billion litres after AnheuserBusch International Presence: Present in multiple geographies Europe, USA, Africa, Asia etc. Imported where not bottled also had licensee agreements in many countries Most heavily advertised premium beer in Europe and worldwide mostly through TV commercials (90% spends)
Weaknesses
Non standardized brand communication across the world: thus, Image of the brand was different in different countries Narrowly drawn image in many countries: seen as appropriate only for special occasions Some licensees did not maintain the price premium of the brand as compared to their domestic brands No production base: Imported into Germany and US, both of which had sizeable beer drinking population
Our Take: Heineken at that time was not a global brand as:
Brand values communicated were not consistent across the world Brand was perceived differently by people in different countries Premium Vs mainstream beer brand Occasion based Vs everyday use beer brand o In Netherlands, it is viewed as a mainstream brand, and a market leader o In USA & Hong Kong it is perceived to be a beer that is used for special occasion rather than for daily consumption o In Latin America it is viewed as just one among many European imported beers Thus, though the company has a global presence, its image and identity perception is varied across the world. The main issue surrounding the company is to establish a strong global brand which is standardized across all the countries in the world
Ques 2. Learnings
Exhibit 3
Ireland and UK rank amongst the highest in beer consumption yet market share position is weak in UK The highest percentage of people naming Heineken as their first choice is highest in Greece and lowest in Italy and Spain with UK as the third lowest Market share position is weakest in Spain and UK so Heineken needs to build and infiltrate the market Heineken needs to increase its SOV in UK and Spain Greece is its best market
Taste Focus
Indicators of beer taste vary with country Important indicators of beer taste Scale of plant, taste experience, balanced taste, foam, drinkability, advertising and packaging Heineken s suitability: Advertising boards depicting quality, tradition were found to be more suitable Availability and brewing skills were considered unimportant Brand vision in advertising boards was negatively received
Ques 2. Learnings
Friendship Focus
Substantial agreement across different national markets for standard vs. premium beer
Standard
Nuclear family / Large groups Thirst quenching Daytime Beach Social participation Thirst quencher
Premium
Intimate friends / Smaller groups Savoring Night-time Intimate moments & places Ego enhancement/ Self esteem A treat
Visual boards and messages depicting Always count on Heineken and True friends were found to be more suitable Visual boards and messages depicting Trust , Sports were considered unimportant Visual boards and messages depicting Respect were not found suitable For Netherlands Rugby , True Friends and Always count on Heineken were the expressions when they were asked to convey the core value of friendship For Germany only true friends and Always count on Heineken were the expressions. For Italy cat and dog , Rugby , and Always count on Heineken were the expressions of friendship For USA like Germany only true friends and Always count on Heineken were reasons to believe
Heineken Beer appeals to the head and heart by way of it s great taste and association with friendship
Communication Idea
Market evolution
High local brand High local brand loyalty; Local loyalty; Local fragmented brewers fragmented brewers Development of std Development of std beer; Shifts in consume beer; Shifts in consume taste taste Quality improvements; introducing premium beer High volume focus; High volume focus; Price competition Price competition Consumer Consumer sophistication; market sophistication; market segmentation segmentation Brand/segment Brand/segment proliferation; Product proliferation; Product differentiation differentiation
Recommendation
High reach & frequency of advertising to familiarize and create brand awareness Focus on the high quality of beer and higher share of voice to create trials and awareness Introduce premium quality in addition to focus on taste and quality. Higher reach through distribution High Frequency of advertising and use of distribution channels to gain higher market share
Eastern Europe South East Asia, South America, Greece Italy, Spain, and Japan N&C Europe and Australia USA
Take off
Growing
Take off - Growing
1.Mature
Growing
2. Declining Mature
Declining
Focus on premiumness of the product and Experience that the Brand provides. The brand should be shown as the choice of sophisticated users with friends
Current Status
The company was one of the first beers to be positioned as a premium lager, thereby creating smart positioning that turned out to be highly successful It now has over 170 brands, the vast majority of which are local brands. The company strategy is simple and effective. The expansion is mainly the result of the strategy in which European takeovers of local breweries and their brands are a central principle They are assessed for their local growth potential and, if found suitable, are left as they are. In many cases, Heineken is then introduced alongside the local brand as a premium brand, thereby creating a global premium positioning In recent years, the company has become far more active in the broad arena of brand activation through communication and targeted sponsoring in music and sport. The Olympic Games, Champions League, rugby and music are areas where the company feels perfectly at home Other initiatives: Project Beacon (Glocalization): Young adults are not a homogenous international target group. They're interested in international brands, but remain strongly attached to their personal cultures and origins Thirst Platform: Heineken launched in the summer of 2002. This is an international dance-concept in which young, local up-and-coming DJs get the chance to play with famous international DJs. This world of entertainment fits very well into the Heineken brand, and it also addresses the needs of each local market
Thank You